Market Closes - March 26, 2013

For the most part, this week’s trading is about positioning ahead of Thursday’s USDA reports on planting intentions and grain stocks; they will be released at 11 am Thursday and the CBOT/CME is closed on Good Friday. However, concerns about some HRW wheat being damaged by weekend frost helped push the KC contract higher.

The CME will raise the margin requirement on corn futures tomorrow. The new margins are $2700 initial/spec and $2000 maintenance/hedge which is up from $2025/$1500 respectively.

The weak boxed beef market continues to weigh on cattle futures. The 3-day weekend for Easter will not help. Choice down 0.15 at 190.43; Select down 1.04 at 189.17.

Lean Hog futures closed higher in follow-through buying from Monday. Strong cash hog markets were supportive, but the pork market didn’t get the “memo” -- today’s Pork Cutout is down .37 to $77.59/cwt. Maybe hog traders are more willing to bet on the spring grilling season arriving soon. April futures are about a nickel above cash hog prices so something has to give pretty soon.

Stocks rallied strongly today despite a drop in Consumer Confidence. The Conference Board’s index dropped to 59.7 from February’s revised 68.0; economists expected a reading of 67.5. Sales of new homes also fell 4.6 percent. However, Durable Goods Orders jumped 5.7 percent, the most since September 2012. The SP500 Index came within a point of its record, while the Dow Jones Index hit a new record high.

MONSANTO AND DuPONT SETTLE CLAIMS Monsanto will dismiss its claim that DuPont infringed patents for Roundup Ready soybeans, setting aside a $1 billion jury award, and DuPont will dismiss its claim that Monsanto uses monopoly power to stifle innovation, the companies said in a joint statement. The world’s largest seed companies also agreed to enter into licensing agreements for making genetically modified crops.